Disposable Income

Economics ⇒ National Income and Related Aggregates

Disposable Income starts at 12 and continues till grade 12. QuestionsToday has an evolving set of questions to continuously challenge students so that their knowledge grows in Disposable Income. How you perform is determined by your score and the time you take. When you play a quiz, your answers are evaluated in concept instead of actual words and definitions used.

See sample questions for grade 12

Define disposable income.

Describe how disposable income affects the consumption function in macroeconomics.

Describe the effect of an increase in disposable income on the savings rate of households.

Explain the difference between personal income and disposable income.

Explain the impact of a decrease in direct taxes on disposable income.

Explain the relationship between disposable income and aggregate demand.

Explain the significance of disposable income in the economy.

Explain why disposable income is considered a better indicator of economic welfare than personal income.

Disposable income is calculated after deducting which type of taxes? (1) Direct taxes, (2) Indirect taxes, (3) Both direct and indirect taxes, (4) No taxes

Which of the following best describes disposable income? (1) Income before taxes, (2) Income after direct taxes, (3) Income after all taxes and transfers, (4) Income before any deductions

Which of the following best represents the use of disposable income? (1) Only consumption, (2) Only saving, (3) Consumption and saving, (4) Paying taxes

Which of the following is a correct statement about disposable income? (1) It is always more than personal income, (2) It is always less than or equal to personal income, (3) It is equal to national income, (4) It is calculated before taxes

Disposable income is also known as ______ income.

Disposable income is also referred to as ______ income in national income accounting.

Fill in the blank: Disposable income is a part of ______ income.

Fill in the blank: Disposable income is the income available to households for ______ and ______.

Personal disposable income is always less than or equal to personal income. True or False?

True or False: Disposable income can be negative.

True or False: Disposable income is always equal to personal income minus indirect taxes.

True or False: Disposable income is the income available after all taxes and compulsory payments.